As threats to systems become more and more complex and ubiquitous, we see a call from regulators, insurers, and even the government to approach the problem using a risk-managed approach. In the past, an approach such as using an embedded risk management tool (GRC tool/ERM tool), would have been classified as an enterprise solution and not a Small-to-Medium Enterprises need.
Today we see the landscape is changing: Integrated Risk Management is becoming an essential part of cybersecurity operations for Small-to-Medium Enterprises.
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What is Integrated Risk Management?
According to Gartner, Integrated Risk Management (IRM) is “a set of practices and processes, supported by a risk-aware culture and enabling technologies, that improves decision making and performance through an integrated view of how well an organization manages its unique set of risks.” It is less about strategy and more about the day-to-day management of risk in our decision making.
What is the purpose of IRM?
IRM can help organizations improve their risk management capabilities by providing a framework for identifying and assessing risks, developing mitigation strategies, and monitoring risks for effectiveness. IRM can also help organizations improve their risk appetite by providing a way to prioritize risks and allocate resources accordingly.
Key parts of an IRM program
IRM is a continuous process that should be tailored to the specific needs of each organization. There is no one-size-fits-all approach to IRM, and the specific steps involved in IRM will vary from organization to organization. However, the following are some of the key steps involved in IRM:
The first step in IRM is to identify the risks that the organization faces. This can be done by conducting a risk assessment, which is a process of identifying and analyzing risks.
Once the risks have been identified, they need to be assessed. This involves determining the likelihood and impact of each risk.
Develop Mitigation Strategies
Once the risks have been assessed, mitigation strategies need to be developed. Mitigation strategies are actions that are taken to reduce the likelihood or impact of a risk.
Once mitigation strategies have been developed, they need to be monitored. This involves tracking the effectiveness of the mitigation strategies and making adjustments as needed.
Review and Update IRM Plan
The IRM plan should be reviewed and updated on a regular basis. This will ensure that the plan is up-to-date and that it is meeting the needs of the organization.
Benefits of Integrated Risk Management for Small-to-Medium Enterprises
So how do we get to where Small-to-Medium Enterprises effectively integrate risk management? Through organization and awareness. While integration can be done manually, there is a considerable benefit to managing it via a system that makes it easy to track and report. Other benefits of an IRM tool include:
- A single view of top risks to set strategy.
- Better alignment of the business and the IT landscape.
- Creating a business culture that is aware of cyber risk.
- Improving efficiency and meantime from risk assessment to risk mitigation.
Risks are becoming more complex with new emerging threats, regulations, and laws that continue to demand validation. Companies need to integrate solid risk management programs and be able to demonstrate their current risk level, and mitigation actions being taken to consistently reduce risk and improve cybersecurity maturity.
Using spreadsheets to manage and monitor risks can’t do the job properly in today’s world. Instead, large and small organizations are turning to effective integrated risk management solutions.
Find the right Integrated Risk Management Tool
Learn more about how Foresite Cybersecurity is leading the way with its new Foresite Integrated Risk Management (FIRM) solution. FIRM is an assessment, reporting, and monitoring tool that gets you into compliance fast- without breaking the bank.
Learn more contact us for a demo.